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Thursday, December 20, 2012

JP Morgan-linked firm triples cash in Africert deal

A JP Morgan-linked private equity firm, Pearl Capital Partners (PCP), has exited its investment in a Kenyan agricultural firm in a deal that saw it triple its investment in six years.

PCP said Tuesday it has sold its 36 per cent stake in Africert to a local investment firm, completing its exit from the company.

Africert deals in inspection, accreditation and certification of vegetables, fruits and cash crops such as coffee, tea, cocoa and cut flowers.

PCP’s investment in Africert comprised of an equity stake bought at $35,000 in 2006, a six-year $85,000 loan charged at 8.5 per cent per annum and an additional equity investment in 2009 through a rights issue.

Overall, PCP’s investment was worth about $150,000 which has grown threefold since 2006 to approximately $450,000 or Sh39 million at today’s exchange rate.